Written answers

Wednesday, 4 July 2007

Department of Enterprise, Trade and Employment

Economic Competitiveness

9:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 26: To ask the Minister for Enterprise, Trade and Employment the steps he has taken or proposes to take to address the issue of the competitiveness of Irish products on world markets; and if he will make a statement on the matter. [19071/07]

Photo of Micheál MartinMicheál Martin (Cork South Central, Fianna Fail)
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The strength of Irish exports in global markets continues to be robust. This is true for trade in both goods and services. In April, the value of merchandise exports (unadjusted) grew by 14% over April 2006. Over the first quarter of 2007, these exports are up 6% over last year. Furthermore the latest Balance of Payments Data released by the Central Statistics Office on 28 June shows that merchandise exports at €21.724 billion were over €1.1 billion higher than in the first quarter of 2006 and services exports were over €1.5 billion higher. Economic commentators are suggesting that export volume in the first quarter of 2007 has jumped 10% year on year.

This perspective on what is happening in the real world of international trade is evidence that Irish exporters are competitive in global markets. Under my Department, Enterprise Ireland has a clear mandate to help Irish exporters. What EI is achieving, shows the considerable success of initiatives to accelerate the export performance and competitiveness of exporters. Our export promotion policies are exerting a direct and positive influence on the ability of Irish exporters to grow their overseas business. For example, overall exports from EI's clients grew 12% in 2006 but exports to key growing markets in Southern Europe/Africa and Asia expanded by 22% and 24% respectively.

EI will continue to extend the reach and effectiveness of its export promotion activities (for example trade missions, the in market Business Accelerator Programme and sector Advisory Boards) as well as its growing range of productivity related initiatives. Higher productivity means companies can be more successful in export markets. For example EI's Productivity Improvement Fund provides support for capital equipment and automation as well as technology acquisition and the essential training and skills to optimise the use of new technology. Last year 150 projects were supported by EI, involving capital investment of over €100 million. This Fund is widely advertised in the media to bring home to enterprise the opportunities for competitiveness supports that my Department's agencies provide.

Productivity improvements at firm level are vital to export competitiveness but the onus is on firms to work with my Department's agencies to access the expertise available to improve their export capabilities. The advantages of working as a client firm of EI to maximise a firm's export capacities and opportunities are overwhelming.

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